RAFI Strategies


RAFI strategies aim to generate excess returns versus the market benchmark through a systematic, contrarian rebalancing approach.

At a Glance

Approximately USD 145 billion track RAFI strategies (as of 09/30/2020)


More than 200 ETFs, mutual funds, commingled funds, and managed accounts offer Research Affiliates methodologies


RAFI indices are trusted globally as the foundation of smart beta strategies


Delivering on the promise of smart beta

RAFI strategies aim to generate excess returns versus the market benchmark through a systematic, contrarian rebalancing approach. RAFI strategies are designed to be transparent, broadly diversified, high capacity, and low cost.


Before “smart beta” there was RAFI

In 2005, long before smart beta gained wide recognition, Research Affiliates introduced the RAFI Fundamental Index. As an established leader in smart beta with a 10-year track record, the Research Affiliates methodologies and RAFI indices are trusted globally as the underlying foundation for many smart beta strategies.



About Strategies

RAFI Multi-Factor is a smart beta equity strategy that offers diversified factor exposures through allocations to value, low volatility, quality, momentum, and size.

RAFI Fundamental Index is a non-price-weighted index strategy that aims to deliver excess return versus the cap-weighted benchmark by using fundamental measures of company size to systematically rebalance against the market's constantly shifting expectations.

RAFI ESG strategies combine the pioneering Fundamental Index approach with thoughtfully designed environmental, social and governance investment themes.

RAFI Low Volatility efficiently reduces equity risk, while maintaining attractive valuations and broadly diversified market exposures.

RAFI Bonds US Corporate Index Series weights a company’s debt according to fundamental measures of a firm’s debt service capacity—book value of assets, gross sales, gross dividends, and cash flow—rather than the amount of debt outstanding. This results in an index with lower credit risk, lower volatility, and better risk-adjusted returns.

FTSE RAFI Bond Indices are based on a transparent rules-based methodology that weights bonds using economic measures of company or country size. The results are indices that are correlated with debt service capacity—tilted toward higher credit quality firms or countries with lower risk of downgrade or default.


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